Colorado is in the top 10 states where upper-middle class Americans are moving, according to a new study from SmartAsset.
“The middle class may be feeling the squeeze, but the upper-middle class certainly isn’t. The [middle class] has shrunk from 61 percent of households in 1971 to just 52 percent now, according to the Pew Research Center,” the study’s authors write. “The upper-middle class, by contrast, has seen an uptick to 12 percent of households compared to just 10 percent almost 40 years ago.
“This growing, high-earning demographic is also on the move, migrating across state lines potentially looking for job opportunities, attractive housing markets and/or lower tax liabilities.”
Colorado ranks 10th on the list, with Florida, Texas and Arizona taking the top three spots, and Illinois, New York and California ranking lowest.
For the study, SmartAsset analyzed the most recent IRS data on inflows and outflows of people with incomes between $100,000 and $200,000 in every state and the District of Columbia.
It found upper-middle class Americans are gravitating toward tax havens. Four states in the top 10 — Florida, Texas, Nevada and Washington — have no income tax. Colorado and North Carolina have a flat rate income tax.
Colorado gained 2,580 upper-middle class residents between 2017 and 2018.
“Those interested in moving there might wish to note that the Rocky Mountain State has a flat income tax of 4.63 percent and relatively low property taxes,” the study states.